•Report by Mudasir Opeyemi
The Osun State Governor, Ademola Adeleke, has disclosed that his predecessor, Gboyega Oyetola, allegedly took N18 billion loan after he lost the July 16th, 2022 Osun governorship election.
This was as he also revealed that the state is indebted to the tune of N407.32 billion as of November 30th, 2022.
Adeleke disclosed this on Thursday during a meeting with Osun State Traditional Rulers at Osogbo, Osun State Capital.
He said his disclosure about the current debt profile of the state was in line with his promise to be transparent and accountable to the people people of Osun.
“With high sense of responsibility, I am reporting to our people through our traditional rulers, the total debt profile inherited by my administration from Governor Oyetola’s administration.
“This event is in pursuance of my pledge to Osun people to be transparent and run an open government,” he said
Adeleke further explained that the repayment period for the loan facilities ranges from 16 months to about 28 years.
He said:”My administration inherited eight outstanding loan facilities, apart from Salaries and Pension Debts, from Governor Oyetola’s administration.
“My good people of Osun state, the total loan stock as of today is N331.32 Billion.
“If the N76 billion debt on Salaries and Pension are added, the state is indebted to the tune of N407.32 billion. The amount owed to contractors is yet to be determined.
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“The only fund in government coffers, as of Monday 29th November, was for November 2022 Salary. Otherwise, the state treasury was empty.
“As your governor, I will ask questions on your behalf. And will demand answers,”Adeleke told the traditional rulers.
He added, “Governor Oyetola must explain how the N331 Billion borrowed in the name of Osun State was expended, with no obvious infrastructural development to justify this huge debt.
“Governor Oyetola must explain how the N18 Billion Bridge Loan taken after he lost the election on July 16, 2022, was expended.
“Governor Oyetola must also explain why Osun state is owing Salaries and Pension to the tune of N76 Billion after collecting a N50 Billion Salary Bail Out Loan from the Federal Government
“The Creditors, especially the Commercial Banks must explain why various loans were given to an administration beyond its 4-year tenure. 28 years is equivalent to the tenure of at least four Governors. A child that is born today would have earned a Ph.D. at 28 years of age. This is nothing but mortgaging the future of Osun State with nothing to show for it. This is definitely not acceptable.”
Adeleke further disclosed that a large portion of these loans were taken after July 16th, 2022 election which Governor Oyetola lost.
He said “No information on the Repayment terms.”
“Not one kobo of this loan was left in Government Coffers, when the Deputy Governor and I resumed work on Monday 29th November 2022. And no explanation on how the loan was expended,”he said
The Breakdown of the Debt According to Governor Ademola Adeleke is as follows:
1. Budget Support Facility:
• Outstanding Balance: N51.8 Billion
• Monthly repayment: N154.9m
• Repayable Period Outstanding:
335 months = 27 years 9 months
2. Salary Bail Out Loan:
• Outstanding Balance: N38.8 Billion
• Monthly Repayment: N232.77m
• Repayable Period Outstanding:
•167 Months = 13 years 9months
3. Restructured Commercial Bank Loans:
• Outstanding Balance: N158.77 Billion
• Monthly Repayment: N1.14 Billion
• Repayable Period Outstanding:
139 Months = 11years 6 months.
4. Excess Crude Account (ECA) Loan:
• Outstanding Balance: N14.48 Billion
• Monthly Repayment: N89.97m
• Repayable Period Outstanding:
161 Months = 13 years 4 months
5.CBN Infrastructure Loan:
• Outstanding Balance: N9.2 Billion
• Monthly Repayment: N44.98m
• Repayable Period Outstanding:
205 months = 17 years 1 month
6. FGN Intervention Loan:
• Outstanding Balance:
N1.7Billion
• Monthly Repayment:
N100m
• Repayable Period Outstanding:
17 months
7. FGN Bridge Finance Facility: N18.04 Billion
Budget Support Facility: Outstanding Balance;N51.8 Billion
Foreign loans: $86.2m